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OPPORTUNITY FUNDS SITTING ON THE SIDELINES

April 11, 2012 Leave a comment

Billions of dollars have been raised by opportunity fund entrepreneurs for investments in real estate and real estate note assets.  Most of the money remains on the sidelines.  The multi-billion dollars in CMBS re-discount and asset purchase that has certainly been looming on the horizon has yet to yield pay dirt for most fund managers.

The savvy managers are now repositioning their funds to take advantage of other real estate equity and mezzanine opportunities that still get the high yielding returns that they have been waiting to get for 5 years.  These managers are now looking at putting equity and mezzanine debt behind conventional construction transactions that have solid pre-leasing and/or build to suit tenants.

The types of properties that have been drawing interest from fund managers are:

  • Assisted Living
  • Multi-family
  • Industrial
  • Retail

The slower “get in the game” property types are:

  • Skilled Nursing
  • Office
  • R&D
  • Special Purpose
  • Residence Subdivisions

Stay tuned for more input regarding this emerging marketplace.  DARA, Dominion America Realty Advisors is currently active in placement of mezzanine and equity debt in these markets.

For more information about Dominion and its real estate mortgage loans, please visit www.dominfin.com.

(310) 477-3041

Categories: Dominion's Blog